I SPEND a lot of time travelling outside Hong Kong on business. Should I be paying tax on the whole of my income?KPMG Peat Marwick replies: It depends on the source of your employment.
A person with a Hong Kong source of employment is subject to tax on all of his income from that employment, irrespective of where he performs his services.
A person with a non-Hong Kong source of employment will be subject to tax only in respect of services performed in Hong Kong.
In practice, this gives rise to a partial exemption from tax calculated by reference to the number of days that the taxpayer is outside Hong Kong. Each week independent financial adviser Patrick Tuohy and accountancy firm KPMG Peat Marwick answer readers' problems. Letters are treated with the strictest confidence and names and addresses will be withheld from publication.
